I suggest you take off the comedy "TEN SIGNS OF A SWINDLE IN MINING"

TEN  SIGNS  OF  A  SWINDLE

Guide for Owners, CEO s and Investors of Mining Enterprises

Ph.D. Natalia Petrovskaya is the author of the guide

If you are a Mediator, a Contractor or a Consultant, don't read!

Assume that you are an owner or a manager of mining and metallurgical Plant, and you have a need to solve some complex technical problem (to develop a project of a new Plant, a new technology, to optimize the processes, to change the equipment, software, etc.). You can't do it yourself, because you don't have experts. By an advice of friends you are accessing to the mediation company offering engineering services and much other. "They will help me for sure here! It's all so serious, it's almost a ministry!" Maybe so. But you should not relax. After all, only you are interested in a solution of your problem. All others are only interested in your money and no one is going to save your money. That's for sure!

However, enough the presence of the following features to recognize an unscrupulous contractor:

1. Easy money. Contractor shows an indifference to the final result of solving your problem. For example, He doesn't agree to take shares of your company as a pay for his services. Why? Securities is a normal form of payment for the person or company that focuses on serious and long-term cooperation with you. The contractor's failure to take your securities denotes a lack of grave intention towards your company. So, the contractor doesn't believe in the success of your project, your company. He is not going to seriously deal with your problem. He just wants quick easy money. Most likely, the contractor wants to sell you a project, a technology that it has already sold 158 times (under different sauce), without dependence of whether how the decision is suitable for your Plant, for your ore.

2. Bluff. Contractor quickly agrees to solve any your complex problem even without requesting the necessary information on the subject matter. - "Of course, we can do it all! Without doubt!" The Contractor easy gives a lot of promises to you. Do not be surprised when you find a discuss of your problem on Web Forums and somebody requests free help to solve them. There is only one conclusion: the contractor was not originally going to really solve your problem. He hopes to get out somehow before deadline of the project (to find one culpable).

3. Copier. Contractor doesn't have professionals with scientific degree in the staff. But if you ask about it, the contractor promises to hire the necessary experts already in the process of the task. The fact that specialists of engineer's level can only repeat known solutions. Not the fact that it is suitable for your Plant. To create something entirely new, exclusively for you - is a serious task for a doctorate, but is not a task for an engineer. Therefore, the contractor often tries to artificially limit the scope of solving the problem by one or two known options: "Everyone is doing it in the same manner! Always!". And there is no liability if "everyone is doing it". It's cheap, fast and convenient for the contractor, but it is expensive and often useless for you eventually.

4. Bait with a great name. Contractor is trying to get you by a great name of scientist or a famous professional, who is reportedly already agreed to participate in the project. Some indirect proof of this is presented to you. But the well-known scientist (pro) is not contacting with you now (on some reasons). Only a mediator leads all negotiations and meetings. When the contract has been signed, the famous scientist's name is missing from the list of performers of the project by some reason. Or his name disappears at a later stage of the project. But this is no one cares. They in fact already spent the money. In some cases, a participation of famous person in the project is still supported, but only as a sign in the final document. You've never seen this person. Also, may be another version of this swindle - in the list of performers of the project will be name (s) of other person (s), but very similar with the great name. In this case, please contact directly with the famous person, discuss your project and its part in the project. Often this famous person even doesn't know about the project.

5. Bubble. Under various pretexts, Contractor is actively trying to attract to the implementation of the project as much as possible quantity of performers and subcontractors (often from different countries). He also clearly justifies the need to divide the project into numerous intermediate parts and sub-parts. Contractor justifies the need for a large quantity of experiments, analysis, tests, consultations. Why? Indeed, in this case, it is much easier to justify the exaggerated budget of the project and to dilute responsibility for the final result. Who is a culpable, that it didn't work? Immediately one could not tell it. "It's been a part of the project, and it is made with quality! Let's look at a new project, all these things can be improved!" And your looting continues. The worse the work is done, the more contractor earns with additional services to further improve of some things. And you feel a pity for to stop it all, because you have already given the contractor a lot of money.

6. Dealer. Contractor initially orients you to the technologies and products of certain brands. In this case, it is likely that the contractor is a partisan representative of these brands of products. He is initially biased in solving of your problem, and he will not consider all alternatives with technologies and products, which are better and cheaper for you.

7. Poseur. On your question of "What you can offer me in my specific situation?", Contractor says that he and his company is a well-known brand with a reputation and history. Contractor flaunts with a huge number of diplomas, certificates and other documents. He concentrates all your attention on the scrolls. If the contractor once again says about the scrolls and his rich history instead of to discuss your particular issues and real cases in a practical area, then it is a serious reason to doubt in his competence.

8. Demagogue. Contractor avoids direct discussion of technical substance of the draft. He avoids direct answers to your pressing technical questions. He is masked under common arcane phrases, buzz words, pseudo-scientific formulations. "This is a very complicated electrochemical process! I can explain it to you, but it is excessively difficult and it takes a lot of time. You will not understand..." You can't win him in discuss. It's impossible! He is a sophist! Most likely, this man and his team are technically incompetent, they don’t understand the essence of your problem.

9. Innovator. Mediator offers to you new products (equipment, reagents), but doesn't offer to you a ready-made recipes (decisions) of its application for your Plant, for your ore. It assumes that you will understand how to apply all those expensive new items yourself. Very often, these "innovations" are 30-50 years old. Since that time, there are other, better patents on the use of these products. However, the mediator doesn't know it. If you don't succeed to get the effect from the use of this new product in some time, then the mediator answers to your request: "Try to increase the consumption of new reagent to 2 (5, 10, 100) times! You can also replace your other reagents (equipment) to the new items (more expensive). We provide it all. Maybe it will help for you." However, nobody of innovators advises reduce the consumption of reagents, eliminate unnecessary equipment. All the rest - it is your problem.

10. Anyone who is actively contesting the features 1-9 above, the most likely is a swindler.

To be continued.
Of course, the presence of one of these signs doesn't mean that the contractor is unfair. To this can be quite objective reasons. But the presence of two or more signs is a serious reason to think "Do you need this helper?"
We wish you good luck! Be careful and you will succeed.

This guide is absolutely correct for an area of minerallurgy processes. For other mining areas it is partially correct.

Ph.D.  Natalia Petrovskaya, January 4th, 2016